”Exact PEP-screening” of Nordic clients

– A must for automatic client onboarding and for larger Nordic banks and financial firms

KYCScreening PEP

Trapets provides two PEP lists against which banks and financial institutions can screen their end clients. The two lists are called PEP Edge and PEP AC. PEP Edge is an editorially produced Nordic list and PEP AC is an automatically collected global list.

Today more than 100 Scandinavian banks and firms screen against Trapets’ PEP-lists and more than 13 million PEP checks are performed daily.

The Nordic PEP list, KS-PEP Edge, is an editorial list based on the definition of a Politically Exposed Person, their Relatives and Close Associates in the EU’s fourth anti-money laundering directive.

KS-PEP Edge is focused on screening of customers who are citizens in or living in the Nordic region, with almost 100 % coverage. The service provides exact matching using social security number and/or birth date – for avoidance of false positives. 100 % of the Swedish PEPs/RCAs have SSN and nearly all others have birthdate/birth year.

The list contains only PEPs/RCAs that are included in the EU’s 4th AML directive. Many other PEP lists incorrectly contain people that actually should not be included, such as local politicians, which only causes false hits and extra work.

Trapets editorial staff is continuously and on a daily basis updating and adjusting the database to keep it up-to-date. The department has specialised in collecting information about PEP/RCAs living in the Nordic region, namely Sweden, Norway, Finland and Denmark.

KS-PEP AC, an automatically collected global PEP list

KS-PEP AC is an automatically collected list which contains more than 70,000 entities globally. The quality regarding coverage and birth dates is not as good as in the editorial PEP-Edge but the list is a good complement for screening of non-Nordic clients.

Advantages

By including the clients’ social security number and/or birthdate when screening against PEP Edge Trapets’ customers can be quite certain that any matching that occurs is correct. By screening against PEP Edge, customers’ false positives can be avoided and thereby the automatic onboarding process is simplified and unnecessary investigation work is avoided.

A politically Exposed Person (PEP) is a natural person who is or has been entrusted with prominent public functions in a country or an international organization, for example heads of state, heads of government, ministers and deputy or assistant ministers. Also members of parliament or governing bodies of political parties, members of supreme courts, of constitutional courts or of other high-level judicial bodies.

Furthermore PEP includes members of courts of auditors or of the boards of central banks, ambassadors, chargés d’affaires and high-ranking officers in the armed forces. Members of the administrative, management or supervisory bodies of State-owned enterprises and directors, deputy directors and members of the board or equivalent function of an international organisation.

Relative / family member means any spouse, registered partner, common law spouse, and children, as well as their spouse, registered partner, common-law spouse and parents. “Close associate” means a person who, jointly with a PEP, owns or otherwise exercises controlling influence over a company; a person who otherwise has, or has had, a close relationship with a PEP, which need not be a commercial relationship; or a person who alone owns or exercises influence over a company which, in reality been formed for the, has benefit of a PEP.